The Lovesac Company (NASDAQ:LOVE) shares are trading lower in the premarket session on Thursday.

The company reported a third-quarter loss per share of 32 cents, narrower than the street view of 35 cents loss. Quarterly sales of 149.905 million (down 2.7%) missed the analyst consensus estimate of $155.264 million.

The decrease in net sales was primarily driven by a decrease of 8.3% in omni-channel comparable net sales, partially offset by the net addition of 28 new showrooms.

During the third quarter, Lovesac opened five additional showrooms and closed one showroom.

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Gross profit decreased by 0.9% to $87.6 million. Gross margin increased 110 basis points to 58.5% of net sales in the third quarter.

Adjusted EBITDA jumped 6.9% in the quarter under review to $2.7 million.

The cash and equivalents balance as of November 3, was $61.7 million as compared to $37.7 million a year ago. There was no balance on the company’s line of credit as of November 3.

Outlook: Lovesac has lowered its FY25 revenue outlook to $660 million – $680 million (estimate $712.92 million), down from the previous projection of $700 million – $735 million.

The company now expects EPS of $0.27 – $0.74 (estimate: $1.14), significantly lower than the prior view of $1.01 – $1.26.

Lovesac sees fourth quarter revenues of $221 million – $241 million (estimate $268.46 million) and earnings per share of $1.67 – $2.14 (estimate: $2.53).

Price Action: LOVE shares are trading lower by 20.4% to $29.99 premarket at last check Thursday.

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